Two that come to mind are Coinbase & Circle. I did a quick google search, possibly wrong terms. The information I got was useless. I am sure this has been discussed. If there is a good article/link on this it would be appreciated.
Fee for selling and buying and enlisting new coins to their exchange.For example purchasing bitcoin with credit/debit card,coinbase charge up to 3.99% service fee.Circle has different fee structure.I have seen some exchanges even have earnings from ads
Topic: Where do exchanges get their Bitcoin? - page 3. (Read 3888 times)
Two that come to mind are Coinbase & Circle. I did a quick google search, possibly wrong terms. The information I got was useless. I am sure this has been discussed. If there is a good article/link on this it would be appreciated.
Fee for selling and buying and enlisting new coins to their exchange.For example purchasing bitcoin with credit/debit card,coinbase charge up to 3.99% service fee.Circle has different fee structure.I have seen some exchanges even have earnings from ads
They have their fees for each and every transactions and for each and every trade so with these fees the exchanges can easily earn a bigger amount of money and they can survive their exchange with that income.
Two that come to mind are Coinbase & Circle. I did a quick google search, possibly wrong terms. The information I got was useless. I am sure this has been discussed. If there is a good article/link on this it would be appreciated.
Fee for selling and buying and enlisting new coins to their exchange.For example purchasing bitcoin with credit/debit card,coinbase charge up to 3.99% service fee.Circle has different fee structure.I have seen some exchanges even have earnings from ads 
Two that come to mind are Coinbase & Circle. I did a quick google search, possibly wrong terms. The information I got was useless. I am sure this has been discussed. If there is a good article/link on this it would be appreciated.
I think that they have earned those bitcoin from users but also I believe that someone on their team is one of the early adopters.
They probably have invested a lot in the early stages of bitcoin or and are big investors and have bought bitcoin when the price was cheaper.
Because they are an exchange they get profit from exchanges that make users and they usually take fees from 0.2% up to 1%.
Obviously they start with a few bitcons and in time earn more by charging their traders fees on trade they made. From there that stack of bitcoin keeps growing and most of th eexchagnes invest in better security, more usability and even hire more developer to add more coins and/or support employee to improve their support.
Two that come to mind are Coinbase & Circle. I did a quick google search, possibly wrong terms. The information I got was useless. I am sure this has been discussed. If there is a good article/link on this it would be appreciated.
I think that they have earned those bitcoin from users but also I believe that someone on their team is one of the early adopters.
They probably have invested a lot in the early stages of bitcoin or and are big investors and have bought bitcoin when the price was cheaper.
Because they are an exchange they get profit from exchanges that make users and they usually take fees from 0.2% up to 1%.
Two that come to mind are Coinbase & Circle. I did a quick google search, possibly wrong terms. The information I got was useless. I am sure this has been discussed. If there is a good article/link on this it would be appreciated.
Most of the coins come from people who want to sell and buy.These exchanges charge fee for letting their users use their platform.Exchanges also charge fee from coin developers for listing their coins
Well i dont know how big his their portfolio at bitcoin, but they collect fees, and sure they have some contract to buy a number of bitcoins weekly, for lets say 10-20% off the price market, soo they wont fail of funds.
? They get their bitcoins from customers that need cash. It's really not that hard to follow. Where do they get cash from. Customers that sell bitcoins. How do they make money? There is a spread of the buy vs sell price.
Two that come to mind are Coinbase & Circle. I did a quick google search, possibly wrong terms. The information I got was useless. I am sure this has been discussed. If there is a good article/link on this it would be appreciated.
I think they got it from many ways. before the did this exchanges business, they need financial capital that probably they got from the seller or from their job incomes, etc.
so when they have this first financial capital, they can open exchange service. so they exchange crypto to fiat or the opposite.
On exchanges there are a lot of people who are exchanging their fiat to bitcoin and some are exchanging their bitcoin to fiat so these are the people who provide bitcoins to these exchanges when we buy bitcoins from an exchange then we do not buy them from the exchange but we buy them from the people who are selling these bitcoins on that exchange.
Exchanges like Coinbase and Circle get their bitcoin capital by buying it off from mining companies or some pretty rich bagholders and sell it off in the market with some premiums on it. Also, they also buy it off of traders who uses their platform to trade or sell whatever they have. As for profits, they got it from trading fees, withdrawal fees (which are very low amounts) and also, investors giving them money to help improve their services.
Thanks for this short and in the same time very useful explanation.
OP, you might also find some useful information going by the link below:
https://en.bitcoin.it/wiki/Currency_exchange
Exchanges like Coinbase and Circle get their bitcoin capital by buying it off from mining companies or some pretty rich bagholders and sell it off in the market with some premiums on it. Also, they also buy it off of traders who uses their platform to trade or sell whatever they have. As for profits, they got it from trading fees, withdrawal fees (which are very low amounts) and also, investors giving them money to help improve their services.
Exchanges get their bitcoin from users and investors. Some exchanges offers share token and sold it to the market. Next is users are paying for fees everytime the made a trading transaction. There is also this withdraw transaction where they charge you a certain percentage of you withdrawal.
I think it is mainly from the transactioin fees. Some times, in the Poloniex, there are huge volume, so there is lot of fee.
Exchanges get their bitcoin from users and investors. Some exchanges offers share token and sold it to the market. Next is users are paying for fees everytime the made a trading transaction. There is also this withdraw transaction where they charge you a certain percentage of you withdrawal.
The transaction fee is the main income stream for the exchanges. They also lend out the digital currencies.
what about the coinbases and xapos that pay your fees for you? that's gotta add up to a pretty substantial amount per day. that's another dribble of bitcoin they have to find from somewhere.
as i know, usually the exchanger get their bitcoin from transaction fee, exchanger usually charge percentage amount when you do transaction, but for coinbase they got their profit from selling and purchasing bitcoin by user
The transaction fee is the main income stream for the exchanges. They also lend out the digital currencies.
as i know, usually the exchanger get their bitcoin from transaction fee, exchanger usually charge percentage amount when you do transaction, but for coinbase they got their profit from selling and purchasing bitcoin by user
There is no definitive source since they aren't disclosing that publicly but mostly it's from people selling BTC to them, i.e they take the BTC for a lower price and sell at the little bit higher price they usually use.. I doubt they buy it from other exchanges 
In short, they have lots of money from themselves or investor to start their business which means they also buy lots of bitcoin through other exchange.
Also, they take fees at their exchange, instant sell/buy bitcoin, bitcoin debit card card any many more.
But, for website other than coinbase and circle which only rely on their exchange, i think they only got their bitcoin from fees when user make a trade or money from investor.
Also, they take fees at their exchange, instant sell/buy bitcoin, bitcoin debit card card any many more.
But, for website other than coinbase and circle which only rely on their exchange, i think they only got their bitcoin from fees when user make a trade or money from investor.
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